Popular Annual Financial Report 2013
WELCOME The reasons residents choose to live in the Town of Westlake are varied, but they often revolve around quality of life issues. Beautiful homes and safe neighborhoods, a strong sense of community, convenient location, first-rate schools and excellent Town services combine to create an attractive, stable environment in which to reside and raise a family. These positive attributes are the result of many years of community commitment and visioning, combined with solid financial planning. The Finance Department staff is pleased to present The Town of Westlake’s third Popular Annual Financial Report for the fiscal year ended September 30, 2013.
ultimately the community.
The financial information provided is drawn from detailed information found within the 2013 Comprehensive Annual Financial Report (CAFR). This report is intended to The financial statements provide an accessible appearing in the CAFR overview of the Town’s were prepared in financial position and conformance with policies, and its Generally Accepted commitment to delivering Accounting Principles responsive services and (GAAP) and audited by programs in a fiscally an independent auditing responsible manner. Inside firm, receiving an this publication, we unqualified (or clean) provide you with details of how the Town’s revenue is generated, where dollars are spent, and how the local economy impacts Westlake’s overall financial condition. Above all, our goal is to give you an opportunity to better understand the many financial aspects that affect your local government and
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opinion. The numbers contained within the CAFR were obtained by employing the basis of accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). In short, the highest standards of accounting principles have been utilized to ensure full financial disclosure and accountability. Recognition of this commitment is evidenced by the Town attaining the Certificate of Achievement for Excellence in Financial Reporting for six consecutive years from the Government Finance Officers Association for its CAFR document. While the numbers in this Popular Annual Financial Report come from an audited source, they are presented in an abridged, un-audited, non-GAAP format and do not include
the Town’s discretely presented component units (Texas Student Housing). Citizens who wish to review audited GAAP-basis financial statements can refer to the Town’s 2013 CAFR, which is available from the Finance Department, and online at www.westlaketx.org. The Finance Department personnel and staff across the organization are proud to serve this one-ofa-kind community. We hope this year’s Popular Annual Financial Report serves its purpose and helps assure you that every effort is made to manage the Town of Westlake’s tax dollars wisely for the benefit of all.
The Town of Westlake
Driving Service Excellence
FROM THE TOWN MANAGER
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Popular Annual Financial Report 2013
FINANCE AWARDS The Government Finance Officers Association (GFOA) of the United States and Canada has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Town of Westlake for its Annual Report Financial Highlights for the fiscal year ended September 30, 2012. This is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, the contents of which conform to program standards of creativity, presentation, understandability and reader appeal.
How many entities have received the PAFR Award in the state of Texas? Not very many‌Only 24 ! 4 School Districts, 3 Counties, 3 misc. entities and 14 Municipalities including the Town of Westlake.
The information in this report is drawn from the Town of Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013. The CAFR contains more detailed information and can be viewed online at www.westlaketx.org or contact the Finance Department at 817-430-0941 to request a copy.
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An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The Town of Westlake submitted and received this award for the first time in 2011. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements and we are submitting it to GFOA.
The Town was also awarded from the GFOAThe Certificate of Achievement For Excellence in Financial Reporting for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2013.
The Town of Westlake
Driving Service Excellence
FINANCE AWARDS Town of Westlake The Distinguished Budget Presentation Award by the Government Finance Officers Association of the United States and Canada (GFOA) for the preparation and issuance of the annual budget.
Westlake Academy The Association of School Business Officials International has awarded its Meritorious Budget Award for excellence in budget presentation.
Westlake Academy The Distinguished Budget Presentation Award by the Government Finance Officers Association of the United States and Canada (GFOA) for the preparation and issuance of the annual budget. More detailed information can be found in the Introductory Section (page iv) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
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Popular Annual Financial Report 2013
ELECTED OFFICIALS The Town of Westlake was incorporated in 1956 as a Type A generallaw municipality under the rules of the state of Texas. The Town operates under the Council-Manager form of government. The Council is comprised of a mayor and five (5) council members and is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the Town Manager. The Mayor and Town Council members serve two (2) year terms. All elected officials are elected at large for a two year staggered term each May. The Town Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the Town and appointing and supervising heads of various departments. The Council meets the 4th Monday of each month with the Mayor presiding at official meetings and work sessions.
Laura Wheat
Carol Langdon
Mayor
Mayor Pro-Tem
Michael Barrett
Clifton Cox
Rick Rennhack
Wayne Stoltenberg
Council Member
Council Member
Council Member
Council Member
The Town’s administration is committed to professionalism and efficiency. The Town operates its own municipal court, water and sewer utilities, provides street operations, planning, inspections, engineering, general government, and parks and recreation services. The Westlake Fire and Rescue Department provides fire and emergency services to the community. .
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More detailed information can be found in the Introductory Section (page ii) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
The Town of Westlake
Driving Service Excellence
C ITIZENS
M AYOR AND T OWN C OUNCIL Texas Student Housing Executive Director
Board Secretary
Town Manager
Town Attorney
Director of Curriculum & Instruction
Assistant Town Manager Town Secretary Interns 2 x .50
Administrative Coordinator Administrative Assistants (2) Dining Hall Sr. Administrative Assistant (.50)
Nurse
Primary Principal
Exemplary Governance
Town Officials, Both Elected and Appointed, Exhibit Respect, Stewardship, Vision, and Transparency
Service Excellence
Public Service that is Responsive and Professional, while balancing Efficiency, Effectiveness and Financial Stewardship
Fire Chief
PYP Coordinator
Secondary Principal MYP/DP Coordinator
Marshal
Deputy Clerk
Clerk (.50)
Communications
Facilities Maintenance / Parks & Recreation
6 Firefighter Paramedics
PYP Counselor
Librarian
Judge
3 Lieutenants
PYP Teachers
PYP Special Education
Court Supervisor
Planning & Development / Building Inspector
Police Services
WA Technician
(contracted thru the City of Keller)
Human Resources
Sr. Administrative Assistant (.50)
Public Works
Human Resources Generalist
Technician
Billing Clerk
MYP/DP Teachers
Finance
MYP/DP Counselors MYP/DP Special Education Athletic Director
Information Technology
Supervisor
Academy
Municipal
Personnel staffing levels for the Town of Westlake are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year equals one full-time equivalent position with a total of 2,080 hours. Therefore an FTE position of .50 refers to a position that is funded for 1,040 hours per year.
WA Technician
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Popular Annual Financial Report 2013
KEY SERVICES PROVIDED BY THE TOWN
The Town provides to its citizens those services that have proven to be necessary and meaningful and which the Town can provide for the least amount of cost. Major services provided under the general government and enterprise functions are: Fire and emergency medical services, police, water and sewer utility services, park and recreational facilities, street improvements, education and administrative services. The Town utilizes a combination of direct service delivery along with out-sourced services in its service delivery mix. The decision as to which service to deliver directly versus out-sourcing is based on analysis of costeffectiveness, citizen responsiveness, and customer service quality.
General Services The General Service Program is comprised of costs in the budget that may not be specifically identifiable to any operational budget. The activity is administered by the Finance Department and funds various charges that are not defined or directly related to any specific department or activity of the Town. Examples of cost include, electricity, insurance, professional services, contingencies, etc. These types of expenditures affect all budgets and are generally not prorated. Finance The Finance Department is responsible for collecting, recording, summarizing, and reporting the results of all financial transactions of the Town of Westlake, Westlake Academy and Westlake Academy Foundation. Various services are provided including accounts payable, accounts receivable, payroll processing and general ledger reconciliation. Results are reported in accordance with generally accepted accounting principles while ensuring compliance with applicable state and federal statutes, bond covenants and grant contracts by reviewing financial data and reporting such in a timely manner.
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Administration The Administration Department coordinates and manages all facets of the Town’s operations. The Town Manager, reporting to the Town Council, serves as the chief executive officer for all Town operations including serving as Superintendent for Westlake Academy. His duties include implementation of the goals and objectives established by the Town Council, preparation and submission of an annual municipal and academic budget for Council/Board review and adoption, as well as the implementation and oversight of the adopted budget throughout its effective fiscal year. The Town Manager guides, coordinates, and facilitates recommendations to the Council/Board on strategic planning initiatives and policies as well as their implementation. Responsibilities also include attracting, retaining, and developing a municipal and educational work force for delivering top quality municipal and Academy services. Human Resources/Admin Services The Human Resources Department provides services that include all HR functions, benefits administration, risk management, Policy Compliance and General Administrative Services. Support is offered in partnership with other departments for bidding & purchasing, strategic planning, policy development, general administration, and finance. In addition to providing these services to the Town of Westlake, the department continues to successfully support Westlake Academy through our shared services model.
Municipal Court The Municipal Court performs the duties necessary to support municipal judicial functions, assist the public and manage court operations. The program will uphold the integrity of the Court and build public trust by providing unbiased quality service and accurate information delivered in an efficient and professional manner. Town Secretary The Town Secretary performs tasks outlined in the Texas Municipal Law and Procedure for General Law Type A Cities as well as tasks related to the support of the Town Council, Board of Trustees, Planning and Zoning Commission, the Zoning Board of Adjustments, and the Texas Student Housing Authority, and oversight of the Town’s records management program. The Town Secretary is also responsible for communicating meeting information to the community. Communications The department of Communications & Community Affairs is responsible for leadership and representation on matters related to Town and Academy communications, promotion, and citizen/parent engagement. The position coordinates facilitation of neighborhood meetings, publication of our email blasts/publications, Town advertising, web site development, various community events and gatherings, and serves/supports the Westlake Historical Preservation Society as Town liaison.
The Town of Westlake
Driving Service Excellence
KEY SERVICES PROVIDED BY THE TOWN Building and Planning The Planning and Development Department is responsible for processing platting and zoning requests and ensuring that proposed development will conform to the Town of Westlake’s comprehensive plans. This also requires the continuous updating and amending of ordinances to address ever-changing development concerns. The Building and Code Compliance Division is responsible for the administration and enforcement of the Town’s adopted building codes and ordinances to assure that development is executed and maintained in compliance with ordinances and approved development plans. Public Works The Public Works Department is responsible for the operation, maintenance, repair, and installation of the Town’s traffic signs, signals, roadway markings, and 10.8 miles of street pavement and storm drainage; maintaining public records and regulatory requirements. Public Works also assists other departments, the Academy, and volunteer groups as needed by providing services such as setting up for community events; providing traffic control devices for DPS use; supervision of community service workers; provide back-up coordinating and inspecting work for facility maintenance. Information Technology Information Technology works with the Town Manager to establish IT policy, evaluate and recommend technology solutions for specific departmental needs and provide administrative support to network infrastructure, systems, and for municipal and academic staff.
Facilities Maintenance The Facilities Maintenance Department currently maintains all aspects of the Westlake Academy campus buildings as well as the fire station. This includes maintenance of the interior and exterior of these existing buildings as well as HVAC units, landscaping, remodeling projects, equipment maintenance, security equipment and building assessments. The Director manages all service and maintenance contracts on Town owned assets and also the leasing contract for Town Hall facilities. Beginning summer 2013, the management of related construction contracts and work on the 38,700 square foot Westlake Academy expansion will also be the responsibility of this department. Parks and Recreation The Parks and Recreation Department maintains a 39.5 acre park and open spaces, which includes Glenwyck Farms, the Terra Bella sub-division and the Parchman off-site property. The trees along roadways and cemetery are maintained to ensure the safety of the drivers and pedestrians. Additional trails and a pedestrian underpass are being constructed with the development of FM 1938 and along Dove road adjacent to Deloitte University. Westlake Academy and the park, located in Glenwyck Farms, provide the facilities and space for recreation use to the public. The park at Glenwyck Farms and the Academy campus hosts sporting events, facility rentals, Arbor Days, Bandana Bonanza, Christmas Tree Lighting and Decoration Day.
Fire/EMS Services The Fire-EMS Department provides for the public safety needs of the Town via a variety of programs and services. The majority of these services are Fire and Emergency Medical Services (EMS) related but also includes hazardous materials mitigation, fire prevention and public education. Many civic organizations also benefit from these types of services. Business organizations have benefited through the training activities and inspection/prevention programs that the Department provides. The Department will continue to provide the most efficient method of delivering the traditional services – Fire Protection, Emergency Medical Services, Fire Inspections and Public Education while continuing to seek further avenues of outreach into the community. Police Services The Keller Police Department is the provider of law enforcement services for the Town of Westlake. In June of 2002, the two communities began an inter-local agreement, which would benefit both organizations through the provision of police related services for Westlake citizens and bring additional staff resources via the contract commitments for the City of Keller. The police department was accredited through the Commission on Accreditation for Law Enforcement Agencies (CALEA) in July of 2006. Only 2% of police departments in the United States ever achieve this recognition. Jail and dispatch services are provided through a regional configuration – serving the communities, of Westlake, Keller, Southlake and Colleyville.
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Popular Annual Financial Report 2013
WESTLAKE HISTORY In the beginning…
The Town of Westlake has a short but fascinating history. The geographic region, known as the place where the cross timbers met the prairie, holds tales of settlers from the Peters Colony, Indian treaties signed by Sam Houston, tremendous archeological treasures, and some of the oldest settlements in north Texas. The region has always been known for its natural bounty, its trade value, and its wonderful people. The Town of Westlake and northeast Tarrant County has maintained that distinction over the years, becoming one of the most desirable and sought after places to live in America.
Early Settlers… 1847
The Town of Westlake was settled by Charles and Matilda Medlin when they arrived in the area with about 20 other families in 1847. They initially settled along Denton Creek but moved south to higher ground after weathering ferocious floods from the creek. Until 1997, the threestory Medlin barn was a local historic landmark.
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When it had to be removed, after what was believed to be 130 years, for safety concern. Legends include those of Sam Bass and Bonnie and Clyde hiding in the barn.
The 1870’s…
Dove Road was the cardinal road between Grapevine and Roanoke. The road took its name from the Dove Community which was located between the two towns. Dove Road originated in the 1870’s and got its name from the Lonesome Dove Baptist Church located in the community.
The 1930’s…
In the late 1930s, Ted Dealey, turned his attention to a lush and untouched piece of the Cross Timbers region.
In 1955, there were rumors of an attempt to annex Circle T Ranch; as a defensive move, J Glenn Turner organized the neighboring ranches and homeowners in the surrounding community into forming their own city. On the 27th day of December in1956, citizens attended a meeting to declare the Town of Westlake into existence thru incorporation and to swear in the first Board of Aldermen.
It was there he built a stunning country place designed by prominent architect, Charles Dilbeck. This place was known as the 220 Ranch.
The area included what is known today as Westlake, plus the area north, to the northern shore of Denton Creek. This northern land was annexed from Westlake and formed the town of Trophy Club in the 1970’s.
The Dealey Home, off Dove Road near Ottinger Road, is now known as Paigebrooke Farm.
The 1960’s…
1940’s – 1950’s
It was late in the 1940’s after World War II, at about the same time that Dealey built his home, that Circle T Ranch has its beginnings with J. Glenn Turner. He used the place to raise and train Tennessee Walking horses, and as a retreat and showplace. Circle T Ranch was expanded throughout the 1950’s to approximately 2,300 acres.
In 1969, the Circle T Ranch was purchased by oil millionaire Nelson Bunker Hunt. The ranch became known for its glamorous parties attended by celebrities from all over the world.
The Town of Westlake
Driving Service Excellence
WESTLAKE HISTORY The 1990’s …
In 1989, Nelson Bunker Hunt declared bankruptcy and the Circle T Ranch was purchased by Ross Perot Jr. in 1993.
The 1970s …
In the early 1970’s, the state decided to name one of Westlake’s well-known streets after the person who was living in the first house on the road. That person was J.T. Ottinger. Also in the early 1970s, Houston developers and professional golfer Ben Hogan approached Westlake about building a golf course, country club, and a housing development. In 1973, Westlake annexed what is now known as the town of Trophy Club, clearing the way for the upscale housing development and golf course.
The 1980’s …
In the mid-1980s, IBM built Solana, the multi use office complex. IBM maintained a large presence until the mid 1990's. At that time, several of the office buildings became available for use by other corporations. Eventually, IBM sold its partnership interest.
In 1997, to the dismay of residents, there was an attempt to dissolve the Town of Westlake. Many court battles, including appeals to the Texas Supreme Court, were waged as emotions rose. Ultimately Town leadership prevailed
The 2000’s …
2000…The Westlake Historical Preservation Society was established for the purpose of recording and preserving the rich history of the Town of Westlake. 2002…VIP’s and residents of Westlake gather at the site of the new Westlake Academy to help raise the first wall of the school. Westlake approved the purchase of the first Fire truck and ambulance. Westlake Historical Preservation Society holds the first Annual Decoration Day on Memorial Day. Westlake Academy opens. The hope is that the new school will spur growth and unite the Westlake community.
8, 2057, during the town's 100th anniversary celebration. 2008…The development of Terra Bella, a 54.7 acre high-end single family subdivision began off Dove Road. 2009…Deloitte University announces Westlake as the site for its $300 million learning and leadership center. Westlake Academy Arts & Sciences Center was completed. 2010…Westlake’s first gas well was successfully drilled in Solana. 2011…New retail growth began along the Town’s western boundary with construction of a new Quick Trip convenience store and a Centennial Fine Wine & Liquor store. 2013…The Town’s open enrollment charter school, Westlake Academy, completed its 10th year of operations. Completed construction on the State’s $15 Million Phase 1 of FM 1938 (Davis Blvd.) project and began installation of streetscape improvements.
2006…Celebrations began to commemorate the 50th anniversary of the incorporation of Westlake in December 1956. 2007…The Town of Westlake dedicated and sealed a time capsule containing a variety of special items. This time capsule will remain sealed until September
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Popular Annual Financial Report 2013
WESTLAKE ACADEMY Westlake Academy is a K-12 open-enrollment charter school, as provided by Subchapter D, Chapter 12, of the Texas Education Code. The Town of Westlake applied for and became the first municipality in Texas to ever receive this special charter designation. The programs of the International Baccalaureate Organization (IBO) have been selected as the educational model utilized at the Academy. These include the Primary Years Program, Middle Years Program and Diploma Program.
WESTLAKE ACADEMY ACHIEVED NEW NATIONAL RANKINGS:
Westlake Academy graduated their first class in FY 09-10 and had 658 students in FY 12-13
Westlake Academy opened in 2003 and just completed its 10th year of operations with another strong showing of academic and extracurricular results by our students.
The Board consists of six (6) trustees and currently, all members of the board of trustees are members of the Town's governing body.
U.S. News and World Report ranked Westlake Academy as 41st in the nation 6th in Texas 11th in national charter schools They further designated the Academy as a Gold Medal recipient; one of only 2% in the nation to receive this designation of top 500 schools based on highest college readiness. Washington Post ranks the Academy as 20th out of 1,900 schools across the nation. Newsweek ranks the Academy as the 52nd best high school in the United States. Source: CAFR Introductory Section (page iv)
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More information regarding Westlake Academy can be found on their website: www.westlakeacademy.org
The Town of Westlake
Driving Service Excellence
WESTLAKE COMMUNITY EVENTS M ASTERWORKS C ONCERT S ERIES …
The Masterworks Music Series is a variety of free music programs sponsored by the Town of Westlake, Cassidy Turley and ARTSNET. These free concerts are for arts lovers of all ages and feature instrumental a vocal music ranging from Country & Western to Blues & Jazz with the entertainment of local, regional and national artists. The concert season begins in April and performances are held at the Village Center.
D ECORATION D AY …
The Westlake Preservation Historical Society sponsors its annual "Decoration Day" event each Memorial Day in Westlake at the Odd Fellow Cemetery. This community event is a public commemoration of veterans, both past and present, who have served our country and defended our freedom and liberties. Activities include live music, treasure hunts for the kids, and a homemade ice-cream competition. Past events have included live reenactments of people and events pertaining to Westlake’s history. The event ends at sunset.
A NNUAL C LASSIC C AR S HOW …
Classic car enthusiasts join together each October at the Solana Club in Westlake for the Annual Westlake Vintage Car Show. This event features vintage classic original or restored to original automobiles, trucks and pickups from 1909 to 1959. Awards included Best of Show, Best of Class, People's Choice and Town of Westlake Mayor's Choice.
A RBOR D AY …
The Westlake Arbor Day Celebration is held each April. This annual celebration is an afternoon of activities, live entertainment, best cookie competitions, auctions, and a variety of great food. Kids' activities have included pony rides, face painting, games, crafts, and an obstacle course. In addition, there are educational sessions on tree care advice, and complimentary trees. Admission is free.
C OMMUNITY T REE L IGHTING …
Enjoy an evening of community fellowship at the Westlake Academy Campus, as the holiday season officially begins with the lighting of the Westlake Christmas Tree. This free event includes games & entertainment, cookie decorating, musical selections by the Westlake Academy Choral Group and Drama Students, and don’t forget our special visitors from the North Pole!
A NNUAL F I RE D EPARTMENT BBQ…
The Town of Westlake Fire Department hosts an annual open house and BBQ dinner in October each year. This is a great community event for our Westlake residents and fun for the whole family! Everyone brings cameras and take photos, enjoy our firemen's excellent BBQ, met our brave first responders, and take a look at our new attack vehicle and medic unit. Check out the video on our town website.
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Popular Annual Financial Report 2013
FACTS AND FIGURES Location
Westlake is approximately seven square miles, located along the Northeast border of Tarrant County and partially extended into the southern portion of Denton County. It is conveniently located twelve miles to the west of DFW Airport and seven miles to the east of the Alliance Airport providing quick, easy access to all areas of the Dallas Fort Worth Metroplex.
10 Year Population Growth
Population
The Town of Westlake has experienced exponential growth in the last decade; the national census reported 207 residents in 2000 and 992 residents in 2011.
Average Age
Percent
18 – 34 years
7%
35 – 54 years
50%
55 – 74 years
34%
75+ years
5%
Source: 2013 Westlake Citizen Survey
Household Income
Percent
Under $50K
5%
$50K - $149K
12%
$150K - $500K
31%
$500K plus
40%
Source: 2013 Westlake Citizen Survey
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328
2004
992 698
703
785
803
847
2009
2010
1063
1109
355
2005
2006
2007
2008
2011
2012
2013
Westlake Employers
The DFW Metro area is home to more Fortune 500 companies than any other area in the United States. Several major employers are located within the Town of Westlake as listed on the chart below.
The Solana Office Complex was the first of many corporate headquarters built by IBM in the 1980’s. Since then Westlake has collected additional corporate residents like, Fidelity Investments, Core Logic, Verizon, TD Auto Finance, and many more.
Top 4 Westlake Employers Fidelity Investments 5003, 64%
Core Logic, 1,90, 23% Wells Fargo, 580, 7%
TD Auto Finance, 479, 6%
More detailed information can be found in the Statistical Section (page 86-87) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
The Town of Westlake
Driving Service Excellence
FACTS AND FIGURES PROPERTY TAX
The Town of Westlake instituted a property tax in 2010. The current adopted rate for FY12/13 is $.15684 Maintenance and operations (M&O) is .14197 Debt service or interest & sinking (I&S) is .01487
Property Tax Rates 0.16000
M&O Rate
DS Rate
0.00390
0.15500
Jurisdictions
The Town of Westlake contracts with the Tarrant County Tax Assessor Collector’s Office to collect the Town’s portion of local property tax.
0.15000 0.14000 0.13500
There are multiple taxing jurisdictions within Westlake’s boundaries; whether or not a business or residence is required to pay tax to a particular jurisdiction is determined by where they are located within Westlake and the boundaries of the respective taxing jurisdictions.
0.01849
0.01487
0.13835
0.14197
0.14500
0.15620
0.13000 0.12500
FY 10/11
FY 11/12
FY 12/13
Currently, the following taxing jurisdictions collect property taxes in Westlake: Independent School Districts; Carroll, Keller and Northwest Tarrant County; College and Hospital Denton County and Trophy Club MUD 1 Westlake residents can determine which taxing jurisdictions apply to their property as well as obtain current property tax rate information by conducting a property search on the appropriate appraisal district website: Denton Central Appraisal District or Tarrant Appraisal District.
2013 Ad Valorem Tax Comparison per $100 0.50 0.45
Trophy Club
0.40
Southlake
0.35
Keller
0.30 0.25
Roanoke
0.20
Grapevine
0.15 0.10 0.05 0.00
Haslet 15.684
Westlake
Homestead Exemptions
The Westlake Town Council approved a homestead exemption of 20%, which is the maximum amount allowed by the State of Texas.
Tax Freeze
The Town Council also approved a tax freeze for all residential accounts identified as over 65 by the tax appraisal district. To learn more information about the tax freeze or find out if you qualify, please visit either of these websites; Denton Central Appraisal District or Tarrant Appraisal District.
Information obtained from Tarrant Appraisal District 2013 Tax Rates per $100 Valuation for Tarrant County. Reference this website: http://www.tad.org/webpages/TaxRates/2013_tax_rates.html
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Popular Annual Financial Report 2013
FACTS AND FIGURES General Sales Tax
Sales & Use Taxes Many people don’t know that most of their sales and use tax is remitted to the State of Texas; in fact, for every dollar of taxable sales, the state receives six and one quarter cents (or 6.25%)
$4.61
$5
Millions
$4
In the State of Texas local municipalities have the option to adopt up to an additional two cents (or 2%) for local use for a total maximum combined rate of 8.25%.
$3.62
$3.59
$3.66
$3.79
$4.38 $3.66
$2.93
$3 $2 $1
This local tax must be in accordance with state law and be utilized for specific purposes as identified by the state’s local government code.
$0
2006 2007 2008 2009 2010 2011 2012 2013 2011 Includes one-time economic development revenues
4B Economic Development Fund – This fund utilizes the revenues generated from a ½ cent sales tax to fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the debt incurred for the construction of Westlake Academy.
General Fund Allocation – The Town levies 1-½ cent sales. The revenues generated from this tax are utilized to offset expenditures in the General Fund and to reduce the property tax burden on local residents and businesses by providing Westlake with an additional unrestricted revenue source.
Hotel Occupancy Tax $800
$710
$700 Thousands
$600 $500
$416
$458
$528
$498
$458
$527
$591
$400
This revenue is recognized in the Visitors Association Fund and is used to help fund a shuttle program for hotel guests as well as other marketing and promotional activities.
$300 $200 $100 $0
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Hotel Occupancy Tax In addition to sales and use tax collections, the Town receives a 7% hotel occupancy tax from the Marriott Solana, Deloitte University and any future hotels in Westlake.
2006
2007
2008
2009
2010
2011
2012
2013
More detailed information can be found in the Introductory Section (page vi) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
The Town of Westlake
Driving Service Excellence
FACTS AND FIGURES Residential Subdivisions
The Town of Westlake is home to several communities, all of which share a commitment to excellence but possess unique character and charm: Terra Bella… is a 28 lot, 54 acre, gated planned development subdivision. the first house was permitted for construction in August 2009. Terra Bella is accessible from Dove Road and Sam School Road,
Mahotea Boone - Westlake's oldest subdivision, having been platted about 1978, has fourteen lots, eleven of which currently have older homes. It is zoned for minimum two acre lots and appears to be redeveloping with larger homes. Aspen Lane – This subdivision began in the 1980’s as Shelby Estates and offered lots containing about 10 acres. An old chimney (the site of a future historical maker) denotes the entrance to this subdivision. Paigebrooke – is located off Dove Road near Ottinger Road. This subdivision sits on 57 acres of flat pasture land, and was created to have hills and four large ponds. Glenwyck Farms – this 84 lot subdivision of half acre lots was created in 1999 and is located off Dove Road. Less than 5 years 44% 11+ Years 20%
5 to 10 Years 33%
Vaquero - is home to gently rolling hills and picturesque meadows, worldclass private golf among shimmering ponds and groves of majestic oaks, state-of-the-art club facilities, and personalized concierge services all within a protected family enclave. Wyck Hill – formerly known as the Estates of Westlake was developed in 1996. A unique feature to the Wyck Hill development is that it only has one street. The 14 lots are of moderate size, ranging from one to two acres. Stagecoach Hills - In this 30house subdivision, airplanes are almost as common as cars. The subdivision's name comes from its location on an old stagecoach trail from Keller to Denton. Granada…is comprised of 84 lots for custom homes in the $1.2 million and above range. As Westlake’s newest subdivision, Granada is a gated community with significant amenities, including extensive open space with privately maintained, but publicly accessible trails that will connect with the Town’s existing trail system.
How many years have our residents lived in Westlake? Source: 2013 Westlake Citizen Survey
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Popular Annual Financial Report 2013
FINANCIAL CYCLE JANUARY External Auditor & staff continue work on CAFR & audit 1st quarter financials compiled Council coordinates strategic planning session for upcoming fiscal year Review financial policies FEBRUARY Present Annual CAFR to Council Review budget process for coming fiscal year MARCH New Year Budget Kickoff CAFR submitted to GFOA
APRIL 2nd quarter financials compiled PAFR submitted to GFOA MAY Elections CIP Planning Strategic Planning Workshop JUNE Budget modifications & proposals reviewed & prioritized
OCTOBER Close Funds Publish and Implement new budget Preparation for Academy audit NOVEMBER Fund closing continues External auditors and staff work on Academy audit DECEMBER Adopted Municipal budget submitted to GFOA External auditors and staff begin work on municipal CAFR and audit
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JULY 3rd quarter financials compiled Preliminary Budget review by Leadership Team and Town Manager Certified tax roll received from Tarrant Appraisal District AUGUST Proposed budget presented to Council Budget workshop sessions Budget Town Hall meetings conducted with residents SEPTEMBER Adopt Budget and tax rates End of fiscal year
The Town of Westlake
Driving Service Excellence
FINANCIAL HIGHLIGHTS Each year, the Town of Westlake prepares a Comprehensive Annual Financial Report in accordance with generally accepted accounting principles. This detailed report is over 100 pages long and presents a complete financial picture of the town. While this report is significant to the government and financial community,
many residents do not have the time to study it in its entirety. As a result, the Government Finance Officers’ Association encourages governments to produce a Popular Annual Financial Report (PAFR) that is a quick summary of information in the detailed report.
The data included in the Popular Annual Financial Report below provides a summary of the town’s governmental activities for the year ended September 30, 2013. The largest portion of the Town’s net assets reflects its investments in capital assets (e.g. land, buildings, equipment, improvements,
construction in progress, and infrastructure), less any outstanding debt. An additional portion of the Town’s net assets represents resources that are subject to restrictions on how they may be used. The remaining balance of unrestricted net assets may be used to meet the government’s ongoing obligations.
The assets of the Town exceeded its liabilities at the close of the most recent fiscal year by $37,817,033 (Net position). This number must be viewed within the context that the vast majority of the Town's net position of $27,779,375 (73.5%) are capital assets and that most capital assets in a government entity do not directly generate revenue nor can they be sold to generate liquid capital. The net position restricted for specific purposes totaled $4,243,239 (11.2%). The remaining $5,794,419 (15.3%) is unrestricted net position and may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the Town's fund designation and fiscal policies.
As of the close of the current fiscal year, the Town of Westlake's governmental funds reported combined ending fund balances of $19,443,647, which is an increase of $8,512,786 in comparison with the prior year. Within this total, $12,692,285 is non-spendable, restricted, committed or assigned by management or council.
At the end of the current fiscal year, fund balance for the general fund was $7,051,631, an increase of $1,787,826 in comparison with the prior year. Of this total fund balance, $6, 751,362 is unassigned. This represents 148% of the total general fund expenditures and is equivalent to 539 operating days.
The Town's bonds payable increased by $8,565,000 in total, due to the issuance of Certificates of Obligation bonds in the amount of $9,320,000 for various projects, and the issuance of General Obligation Refunding Bonds in the amount of $2,200,000 offset by scheduled principal payments and bond refundings of $2,955,000.
The Town's capital assets (net of accumulated depreciation) increased by $6,555,286. Eighty four percent (84%) of this increase ($5,444,623) is attributed to the completion of the Town's multi-year, public-private partnership with Hillwood Properties. Hillwood contributed materials and workmanship in the amount of $4,665,818 to help with the completion of the improvements to Dove and JT Ottinger Road. An additional $1.8M was added to construction in progress expense for the Westlake Academy Expansion and several road projects. In addition, three new portable buildings and three lease/purchased portable buildings located at the Westlake Academy campus totaling $379,404 were capitalized during the current year.
More detailed information can be found in the Management Discussion and Analysis Section (page 3) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
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Popular Annual Financial Report 2013
ECONOMIC CONDITIONS AND OUTLOOK While we clearly understand the nation as a whole continues to try and recover from the economic downturn, the Town remains committed to budgeting and forecasting projections based on a fiscally conservative formula. We have accomplished many great things this past year through our use of partnerships and inventive
strategies to govern our community. We have begun the process of reinvesting in our infrastructure and will continue to do so over the next several years – paying special attention to unique cost sharing opportunities, both public and private. Our overall goal is to provide our residents with a living experience that is second-
to-none. The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted with public dollars collected on behalf of our citizens. We are stewards who are fully vested in the success of the Town of Westlake and Westlake Academy. We exist as a municipal corporation for one reason and one reason
only: to prioritize and deliver the best services possible with the resources provided to achieve an exceptional quality of life. This is a challenge the Staff takes very seriously, one that we pursue with vigor every day. Below, please find the milestones and strategic priorities that were achieved during FY 12-13:
Continued to receive recognition for the transparency and high quality of its financial reporting by receiving the following: • Distinguished Budget Presentation Award from the Governmental Finance Officers Association (GFOA) marking the 6th year in a row that we have received this honor for our municipal budget and the 4th year for our educational services budget (Westlake Academy). • International Award for Budget Excellence from the Association of School Business Officials International for the past four years. • Certificate of Achievement for Excellence in Financial Reporting for our CAFR Comprehensive Annual Financial Report (annual audit) which has also been recognized through GFOA for the last five years. • The Town's second Popular Annual Financial Report (PAFR) by converting much of the CAFR document into an easy-to-read format for our residents.
The Town of Westlake was recognized by the Texas Economic Development Council with an award for Deloitte University being the top economic development project in Texas for cities of Westlake's size.
Completed and adopted a facility plan for Westlake Academy, the Town's charter school that is integrated into the Towns 5 Year CIP.
Completed construction on the State's $15 Million Phase 1 FM1938 (Davis Blvd.) project and began installation of streetscape improvements with median plantings.
Westlake Academy was also ranked among the best high schools… • Ranked 20th in the nation by the Washington Post. • Ranked 52nd best high school in the United States by Newsweek • U.S. News & World Report ranked the school as o 41st in the nation…6th in Texas…11th in national charter schools. o Designated the Academy as a Gold Medal recipient; one of only 2% in the nation to receive this designation of top 500 schools based on highest college readiness.
Received the International City/County Managers Association 2013 ICMA Strategic Leadership & Governance Award for the Town's Strategic Issues-Focused Governance Systems (SIGS).
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Invested a total of $4.5M in the Town's infrastructure through the Town's CIP ($3.4M) as well as a public-private partnership with Hillwood Properties ($1.IM) for improvements to Westlake's major roadways Dove Road and JT Ottinger Road. This publicprivate partnership is a multi-year agreement in the amount of $5.3M.
The Town of Westlake
Driving Service Excellence
ECONOMIC CONDITIONS AND OUTLOOK Complete the second of a two (2) year program to move municipal employees' compensation closer to market: this will move our municipal employees into the same compensation position per the same compensation policy that we utilize for Westlake Academy employees (i.e. to be within 3% of the market median)
Daytime Population Growth: Because Westlake is the home of major corporate office campuses, its Monday-Friday 8am – 5pm population is in the 10,000 12,000 range. These office complexes are comprised of notable corporate clients that include Deloitte LLP, Core Logic and Fidelity Investments. Fidelity Investments expanded their office campus in 200809 and is currently populating it.
Permanent Population Growth: The North Central Council of Governments has updated Westlake's 2010 Census from 992 to 1,040 as of January 1, 2013. Based on the Town's water accounts, the calculated population is approximately 1,100 at the fiscal year-end. An increase in population of 210 in 1990 to the present estimated of 1,100 represents a 423% increase.
Comprehensive Plan: The Town's 1992 Comprehensive Plan is in need of total review and consideration for updating. The Comprehensive Plan serves as the "blue print" for planning the Town's growth and for that reason, is of paramount importance for the Town. To date, the current plan has had only had nominal review of the land use portion of the plan. However, a comprehensive plan has many elements and the financial resources proposed for FY 2013-14 will allow for holistic review of the entire plan and all its elements, not just the land use plan element. The total cost of this project ($338,950) is budgeted in FY 2013-14.
Impact of Westlake Academy on Westlake's Residential Growth: The number of Westlake residents that are sending their students to Westlake Academy has doubled in the past five years. Resident surveys show Westlake Academy as one of the main reasons they have moved to Westlake, and why they plan to remain here.
Sales tax collections increased by 19% for FY 12-13. This increase was primarily caused by a 24% increase in revenues due to collections based on the Town's "base" sales taxes. The remaining portions of the tax remained substantially flat. The Town anticipates this upswing to continue in subsequent years.
Increase in Westlake Academy Enrollment: Westlake Academy, the Town's charter school, has shown a steady total enrollment growth from 491 in FY 09-10 to a projected 677 in FY 2013-14. The number of these students that live in Westlake has increased. Attendance from the school's secondary boundaries (i.e. outside Westlake) has increased as well. There has also been a corresponding increase in secondary boundary waiting list students; from 700 in 2010 to over 2,000 students for this past school year.
More detailed information can be found in the Introductory Section (page iv-v) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
Phase I Facility Improvements: Construction has begun to add approximately 36,000 sq. ft. of new facilities comprised of 3 buildings (a secondary classroom building, field house, and primary years' multi-use building) for which $8.5 million in debt was issued in FY 12-13.
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Popular Annual Financial Report 2013
GOVERNMENT WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of the government’s financial position. In the case of the Town, assets exceeded liabilities by $37,817,033 at the close of the most recent fiscal year.
Condensed Statement of Net Position Governmental Activities FY 2013 FY 2012 ASSETS
Business-Type Activities FY 2013 FY 2012
FY 2013
Total
FY 2012
Current assets Capital assets Total Assets
21,781,962 41,121,883 $ 62,903,845
12,185,864 34,313,615 $ 46,499,479
5,987,119 12,123,241 $ 18,110,360
3,503,989 12,376,223 $ 15,880,212
27,769,081 53,245,124 $ 81,014,205
15,689,853 46,689,838 $ 62,379,691
LIABILITIES Long-term liabilities Other liabilities Total Liabilities
27,874,090 2,972,214 $ 30,846,304
20,098,829 1,784,244 $ 21,883,073
6,381,767 5,969,101 $ 12,350,868
5,422,434 5,216,472 $ 10,638,906
34,255,857 8,941,315 $ 43,197,172
25,521,263 7,000,716 $ 32,521,979
NET ASSETS Invested in Capital Restricted Unrestricted Total Net Assets
21,177,426 4,243,239 6,636,876 $ 32,057,541
14,866,299 4,726,376 5,023,731 $ 24,616,406
6,601,949 0 (842,457) $ 5,759,492
6,877,555 0 (1,636,249) $ 5,241,306
A 27,779,375 B 4,243,239 C 5,794,419 D $ 37,817,033
21,743,854 4,726,376 3,387,482 $ 29,857,712
An additional portion of the Town's net position, $4,243,239 (11.2%), represents resources that are subject to external or internal restrictions on how they may be used.
The remaining balance of unrestricted net position, $5,794,419 (15.3%), may be used to meet the government's ongoing obligations to citizens and creditors.
The Town's combined net position changed from a year ago, increasing $7,959,321 from $29,857,712 to $37,817,033.
More detailed information can be found in the Management Discussion and Analysis Section (page 6) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
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The largest portion of the Town's net position, $27,779,375 (73.5%), reflects its investment in capital assets (e.g. land, buildings, equipment, improvements, construction in progress, and infrastructure), less any debt used to acquire capital assets still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
The Town of Westlake
Driving Service Excellence
GOVERNMENTAL FUND SUMMARY The following tables present a summary of general, special revenue, capital project, and debt service fund revenues and expenditures for the fiscal year ended September 30, 2013, and the amount and percentage of increases and decreases in relation to the prior year. Increase FY 2013
Percent
(Decrease)
Amount
of Total
from FY 2012
Sales Tax
4,375,397
20.9%
718,123
Property Tax
1,366,543
6.5%
(75,525)
Beverage Tax
39,727
0.2%
1,441
Hotel Tax
709,578
3.4%
118,725
Franchise Fees
734,935
3.5%
69,944
State Program
4,696,540
22.5%
326,905
Federal Program
81,958
0.4%
(70,393)
Interest Income
24,218
0.1%
(9,135)
Permits and Fees
969,735
4.6%
371,341
Fines & Penalties
695,167
3.3%
72,829
Intergovernmental
10,331
0.0%
10,331
Contributions
5,916,014
28.3%
5,183,479
Miscellaneous
1,280,454
6.1%
(42,783)
Total Revenues
20,900,597
100.0%
6,675,282
General Government
1,910,545
8.4%
31,660
Public Safety
1,967,584
8.7%
(256,885)
Culture & Recreation
113,924
0.5%
2,159
Public Works
532,675
2.3%
141,560
Economic Development
296,565
1.3%
52,626
Visitor Services
521,521
2.3%
45,802
Education
5,803,611
25.5%
(389,949)
Capital Outlay
7,601,631
33.5%
6,491,155
Debt Service
3,971,124
17.5%
2,202,206
Total Expenditures
22,719,180
100.0%
8,320,334
More detailed information can be found in the Management Discussion and Analysis Section (page 10-11) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
Below are summaries and explanations of the changes in fund balances from FY 2012 to FY 2013 of the Governmental Funds that are contained in the these totals: General Fund - Fund balance increased $1,787,826 (34%). Most General Fund revenue categories realized increases over the prior year and many surpassed budget estimates as well. Sales tax receipts, fines and fees, and building permits exceeded both budget and prior year. Sales taxes grew as a result of continued improvement in the local economy. Fines and fees increases as a result of increased collections in municipal court fines and fees and there were double the number of housing permits/fees issued in the current year. 4B Economic Development Corporation Fund - Fund balance decreased $178,384 due to the final reduction which was made related to a receivable from the Utility Fund for an interfund loan made to the Utility Fund for several utility projects in past years Visitors Association Fund - Fund balance decreased by $25,907 primarily due to a budgeted transfer of funds for the partial payment of the bonds related to the Arts and Sciences Center. Capital Projects Fund - Fund balance decreased by $941,968 was largely due to the continuation of several street projects (FM 1938 and SH 114/Hwy 170) and the completion of the Dove and JT Ottinger Road project. Westlake Academy Expansion Fund- Fund balance increased by $7,718,480 because bond proceeds of $8.2M were received in the current year for the expansion to the campus which was offset by project expenses through year-end.
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Popular Annual Financial Report 2013
LONG-TERM FINANCIAL OUTLOOK The Town of Westlake has developed a comprehensive capital improvements document as well as a multi-year strategic plan. Such strategic planning assists both the Council and staff in establishing priorities and allocating resources
appropriately. The selection of any budget theme is intended to bring into focus how resources are recommended to be prioritized and used in order to take the next step in achieving or creating our vision, mission and community values for Westlake. Over the
Over the course of the last several years, we have incorporated a 'theme' into our budget document to help guide and focus our efforts on the critical issues facing us for the coming budget year. This has been an iterative process and can be seen in how we have progressed in our budgeting over the last 5 fiscal years: In FY 2009-10, the budget theme was "Critical Challenges, Critical Choices" as we initiated community-wide dialogue on how best to achieve our community's vision for Westlake, ensure our quality of life, as well as begin the task of identifying our challenges as it related to our future financial sustainability. In FY 2010-11, the budget theme was "Securing the Vision " After a lengthy community dialogue and Council discussions, the Council took the important step to institute our first ad valorem property tax to stabilize our revenue stream and shift from a revenue source that relied almost solely on general sales and use tax. The decision reversed the preceding trend of depleting the General Fund. Decisions in FY 2010-11 led to the FY 2011-12 budget theme of "Investing in Our Future". This theme was derived by being able to assess a small property tax which would give us the ability to invest in the improvement of roadways and other infrastructure projects that would provide tremendous benefits to our residents and businesses over the next several years. With our financial situation stabilized and investment in infrastructure occurring, the FY2012-13 theme of "Driving Service Excellence" focused on providing resources that will improve our ability to deliver excellent customer service, something that is integral to maintaining Westlake's quality of life and its status as a one-of-a-kind community.
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history of our Town, budgets have been prepared with an eye towards being fiscally conservative, while providing for the highest quality of customer service that our residential population has come to expect in Westlake.
The long term factors that will shape Westlake appear at this point to be:  Continued Westlake Permanent Population Growth: Housing starts do not appear to be slowing down any time soon. This is for two reasons. o First, existing lot inventory in developed Westlake subdivisions continues to be reduced through purchase by prospective Westlake residents. These include potential residents who are building in Westlake in order for their children to attend Westlake Academy. o Second, there are 2 developments slated to begin in the next 12-24 months. The first is Granada, an 84 lot single family residential subdivision. The second is Entrada, an 84 acre mixed-use development that will be comprised of various types of residential development as well as commercial development.  Completion of Phase 1 of Westlake Academy Facility Improvements: When these improvements are complete (scheduled for SY 2014-15), Westlake Academy's enrollment will go from approximately 700 to 800.
In that light, the FY 2013-14 theme of "Moving Forward Together: A Growing Community, A Growing School" is relating to the Town's attention to growth related issues both in Westlake as a municipality and at our Town owned charter school. Users of this document, as well as others interested in the programs and services offered by the Town of Westlake, are encouraged to read the Town's Fiscal Year 20132014 Budget. The budget details the Town's long-term goals and financial policies, and describes program accomplishments and initiatives.
More detailed information can be found in the Introductory Section (page vi-vii) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
The Town of Westlake Driving Service Excellence
GENERAL LONG TERM DEBT The Town’s obligations are consolidated into one fund (Debt Service Fund) with payments being transferred from 4B Economic Development Fund, the General Fund and the Visitors Association Fund. Debt Service requirements of certificate of obligation and general obligations to be retired from governmental funds are as follows: Year Ending September 30
Principal
Interest
Total Requirements
2014
927,000
1,151,319
2,078,319
2015
1,050,550
1,015,923
2,066,473
2016
1,073,550
992,507
2,066,057
2017
1,083,000
982,751
2,065,751
2018
1,122,000
940,726
2,062,726
2019-2023
6,148,100
4,165,669
10,313,769
2024-2028
7,211,850
3,086,441
10,298,291
2029-2033
7,050,800
1,543,879
8,594,679
2034-2038
1,593,100
598,547
2,191,647
2039-2043
1,926,850
229,749
2,149,599
$ 29,186,800
$ 14,700,511
$ 43,887,311
Total
STANDARD & POOR’S RATING SERVICES
During the fiscal year ended September 30, 2011, the Town issued Certificates of Obligation in the amount of $2.095 million for various street projects.
During the fiscal year ended September 30, 2013, the Town issued Certificates of Obligation in the amount of $9,320,000 for the Westlake Academy Expansion and Ground Storage Tank project.
The Town issued $2.2M in general obligation bonds for a current refunding of 2008 general obligation bonds. This transaction resulted in an economic gain of $218,480 and a reduction of $255,176 in future debt service payments.
Standard & Poor's Ratings Services, a division of the McGraw-Hill, Inc. has recently increased the Town's rating from AA to AA+/stable. The upgrade reflects their assessment of the town's historically very strong finances and recent implementation of a property tax levy, which has further strengthened finances and lessened the operating fund's reliance on the somewhat volatile sales tax revenue stream.
The rating reflects their opinion of the town's: • Participation in the Dallas-Fort Worth metropolitan statistical area (MSA) economy • Very strong budgetary flexibility with fiscal 2012 audited reserves in excess of 50% of general fund expenditures; • Very strong liquidity, providing very strong cash to cover debt service and expenditures; and Strong management conditions, supported by good financial policy implementation. More detailed information can be found in the Management Discussion and Analysis Section (page 13) and notes to the Financial Statements Section (page 49) of the Westlake Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2013.
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Popular Annual Financial Report 2013
GENERAL FUND FIVE YEAR FORECAST It is important to keep in mind the purpose of a forecast is to get a general picture of what the organization’s financial condition over time could be, based upon conservative assumptions. The term “conservative” used in the context of financial forecasting means revenues are forecast at low growth levels or even at a decline (depending on the revenue source). Expenditures, while not necessarily being forecast as declining, are generally forecast with a 2-3% escalation rate, depending on inflation. Forecasts generally have at least one scenario where all that is assumed on expenditures is the current level of service and perhaps some growth in salary/wage expenses. The Council can, if they wish, ask that certain service level adjustments, whether it is service expansion or reduction, be included as alternate scenarios, particularly if it appears that DESCRIPTION Total Revenues & Transfers in Total Expenditures & Transfers Out NET R&TI Over(Under) E&TO Beginning Fund Balance Ending Fund Balance
revenues will not cover expenditures in the out years of the forecast. It is also important to remember, since the purpose of the forecast is to get an idea, based on conservative assumptions, as to the Town’s financial condition during the five (5) year planning period, that the forecast is likely to show the Town’s financial position to have reductions in fund balance as expenditures begin to exceed revenues (even with conservative expenditure assumptions).
Unassigned Ending Balance
Finally, it is important to remember the criticality that economic conditions play in forecasting, particularly as it relates to sales tax, which can be a volatile revenue source. If economic conditions improve, sales tax receipts are affected (usually positively) as well as building permit revenue.
ADOPTED
PROJECTED
PROJECTED
PROJECTED
PROJECTED
PROJECTED
FY 13/14
FY 14/15
FY 15/16
FY 16/17
FY 17/18
FY 18/19
$6,507,161 (6,907,600)
$ 6,927,679 (7,084,654)
$ 7,132,002 (7,430,859)
$ 7,141,237 (7,467,839)
$ 7,420,986 (7,595,425)
$ 7,695,118 (7,688,421)
(400,439) 5,812,582 5,412,143
Assigned Funds
This is the reason forecasting is a good tool, as it gives the Council time to strategize as to course corrections we may have to make financially, both in the short and long term.
(156,975)
(298,857)
(326,602)
(174,439)
6,697
5,412,143 5,255,168
5,255,168 4,956,311
4,956,311 4,629,709
4,629,709 4,455,270
4,455,270 4,461,967
258,462
263,631
268,904
274,282
279,768
285,363
$5,153,681
$ 4,991,537
$ 4,687,407
$ 4,355,427
$ 4,175,502
$ 4,176,604
Unassigned Fund Balance $5.15
FY 13/14
$4.99
FY 14/15
shown in millions
$4.69
$4.36
FY 15/16
FY 16/17
$4.18
$4.18
FY 17/18
FY 18/19
More detailed information can be found in the Five Year Forecast Section (page 262) of the Westlake Annual Operating Budget for the fiscal year 2013-2014.
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The Town of Westlake
Driving Service Excellence
GLOSSARY Accounts Payable: A liability account reflecting amount of open accounts owed to private persons or organizations for goods and services received by a government (but not including amounts due to other funds of the same government or to other governments). Accounts Receivable: An asset account reflecting amounts owed to open accounts from private persons or organizations for goods or services furnished by the government. Accrual Accounting: Recognition of the financial effects of transactions, events, and circumstances in the period(s) when they occur regardless of when the cash is received or paid.
Bond: A written promise to pay a specified sum of money, called the face sum of money, called the principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Budget: The Town's financial plan for a specific fiscal year that contains an estimate of proposed expenditures and the proposed means of financing them. Capital Expenditures: Any major nonrecurring expenditure or expenditure for facilities, including additions or major alterations, construction of highways or utility lines, fixed equipment, landscaping or similar expenditures.
Activity: A service performed by a department or division.
Cash Basis: A basis of accounting under which transactions are recognized when cash changes hand
Allocation: A part of a lump-sum amount, which is designated for expenditure by specific organization units and/or for special purposes, activities, or objects.
Comprehensive Annual Financial Report (CAFR): This report summarizes financial data for the previous fiscal year in a standardized format.
Amortization: Payment of principal plus interest over a fixed period of time.
Depreciation: Change in the value of assets (equipment, buildings, etc. with a useful life of 5 years or more) due to the use of the asset.
Assets: Resources owned or held by the Town which has monetary value. Audit: An examination, usually by an official or a private accounting firm retained by the Town Council, of organization financial statements and the utilization of resources. Balance Sheet: The basic financial statement, which discloses the assets, liability, and equities of an entity at a specific date in conformity with General Accepted Accounting Principles.
Expenditures: Outflow or non-enterprise funds paid or to be paid for an asset obtained or goods and services obtained. Expenses: Outflow of enterprise funds paid or to be paid for an asset obtained or goods and services obtained. Fixed Assets: Assets of a long-term character, which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, machinery, and equipment.
Balanced Budget: A budget adopted by the Town Council and authorized by resolution where the proposed expenditures are equal to or less than the proposed revenues plus fund balances.
Franchise Fee: A fee levied by the Town Council on businesses that use Town property or right-of-way. This fee is usually charged as a percentage of gross receipts.
Basis of Accounting: A term used referring to when revenue, expenditures, expenses, and transfers – and related assets and liabilities – are recognized in the accounts and reported in the Town’s financial statements.
Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein.
Fund Balance: The excess of a fund's current assets over its current liabilities, sometimes called working capital or fund equity. A negative fund balance is often referred to as a deficit. GAAP-Generally Accepted Accounting Principles: Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. GASB: Acronym for Government Accounting Standards Board, an independent, non-profit agency responsible for the promulgation of accounting and financial reporting procedures for governmental entities. GFOA: Government Finance Officers Association of the United States and Canada Investments: Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. Ordinance: An authoritative command or order. This term is used for laws adopted by a municipality. Proprietary Funds: Operation that operates like a private operation, in which services are financed through user charges and expenditures include the full cost of operations. Revenues: Funds that the government receives as income. It includes such items a tax payment, fees from specific services, receipts from other governments, fines for forfeitures, grants, shared revenues and interest income. Transfer-In: Funds expended in one fund and received in other.
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The Town of Westlake
Driving Service Excellence
Finance Department 3 Village Circle, Suite #202 Westlake, Texas 76262 www.westlake-tx.org
Symbolizes the strengthening position of Westlake as a State and Nationally recognized City
Symbolizing our proud home in the state of Texas
A symbol of Westlake’s commitment to the environment
The symbol of character, honor and strength
The symbol of internationalism
Symbolizes the natural environment and financial growth of Westlake
Popular Annual Financial Report 2013